Amman: Vehicle prices in the local market are witnessing a drop after the government lowered their total taxes to reduce costs on citizens.
According to Jordan News Agency, the average reduction on new vehicles of various types and models ranged between JD1,600 and JD10,000, depending on engine capacity.
Last June, the Council of Ministers approved an amended special tax system for the year 2025, under which total taxes, both general and special duties on vehicles, were reduced. The move is part of a package of government decisions aimed at stimulating the economy and alleviating the financial burdens on citizens.
In a statement to “Petra,” Ahmed Qassas, owner of a vehicle showroom, said prices of hybrid and electric vehicles went down by at least JD1,500, depending on their estimated value, thanks to the customs reductions.
According to the decision, overall taxes on gasoline-powered vehicles were slashed from 71% to 51%, marking a reduction of up to 28%, while duties on hybrid vehicles were reduced from 60% to 39%, at a reduction rate up to 35%. Meanwhile, the special tax on electric vehicles was also fixed and unified to stand at 27% for all categories, regardless of the vehicle’s value or class.
As for the previous special tax system, the surge set to reach 55% was abolished, in accordance with the gradual mechanism announced at the end of last year.